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Shinier term deposits

By Vita Palestrant

Higher term deposits are overtaking online savings accounts in popularity. ‘‘A little while ago, promo rates for online savings accounts jumped as high as 7.75 per cent for a period of up to six months,’’ says Canstar Cannex financial analyst Adam Beu. ‘‘Now, they are back down to 6.01per cent with base rates hovering around the cash rate at 4.75 per cent to 5.35 per cent.’’ The exception is UBank, which offers 6.01 per cent online.

Motoring costs up

The head of financial comparison site RateCity, Damian Smith, says car insurance could rise by up to 15 per cent. Since December 2010, insurers have paid out $3.6 billion in claims due to natural disasters. ‘‘A 15 per cent increase for a typical comprehensive car insurance policy of $700 would add a further $100 a year,’’ Smith says. Motorists can save more than $700 by shopping around online.

Lesson in hardship

A Monash University report has found students are working on average 12.5 hours to 14.5 hours a week to make ends meet. ‘‘With living costs outpacing student income, students must find ways to stretch their modest income as far as possible, without sacrificing study commitments,’’ says student services expert, Vince Callaghan. He has teamed up with the Australian Scholarships Group to provide a free guide on how to minimise living expenses and maximise eligible government student support allowances. How to Survive Uni and TAFE — Without Living on Two-Minute Noodles is available at asg.com.au/howtosurvive.

Logic of thrift

The economic instability of recent years has had an impact on the lifestyles of young Australians, according to an American Express survey. ‘‘Gen Y are hiring, swapping and sharing all kinds of products, from electronics and white goods to fashion items, to avoid making the capital expenditure on expensive items that date and depreciate quickly,’’ says the bank’s Rachel Stocks.